Ethical Behaviour Integrated in CSR: How to create and maintain the Corporate Reputation

Abstract

The objective of this study is to point out how the Corporate Social Responsibility (CSR) and the Ethical Behaviour are linked and represent the conditions of existence for the corporate system, understood as a long-lasting organization of individuals or institutions which produces outcomes for the external stakeholders. We think that ethical behaviours are pivotal in determining the success or failure of an organization. They affect a company’s reputation and help to define a business model that will thrive even in adversity. Organizations can consider ethical behaviour a way to differentiate themselves through the relationships that they create with stakeholders. This study aims to describe ways of identifying the principles of Corporate Social Responsibility that allow a more meaningful understanding of the Ethical behaviour of modern corporations. The interest in the researches in all areas of ethical behaviour and CSR is growing. Ethical behaviour and CSR drive the activities of an organization and the value systems that underlie their business activities. We have studied CSR through the framework of the stakeholder theory of the organizations and posit that CSR as practiced today is connected with ethical behaviour with other dimensions of an overall reputation framework still uncovered. The analysis of the international literature will be accompanied by the case study of the company L’Oreal. The L’Oreal company's behaviour is as important as its economic performance or the quality of its products. In these regards, L’Oreal’s ambition is to be an exemplary company worldwide and integrates ethics into the very heart of its business practices. In 2017, the group was recognized for the eighth time by the Ethisphere Institute as one of the “World’s Most Ethical Companies”. The values of L’Oreal and ethical principles guide the company in the every-day actions. L’Oreal is also in 1st place of France’s CAC 40 companies ranks for the Observatory on corporate reputation.